Company chairman Don Barden blamed its financial troubles on the recession and increased competition. He said that operations would continue at its two casinos and hotel along Lake Michigan in Gary, a casino-hotel in Tunica County, Miss., and a casino in Black Hawk, Colo.

Majestic Star said it ended June with nearly $750 million in liabilities and about $406 million in assets.

Some lenders last month declared the company in default on nearly $80 million in debt.